What is Forex? Forex, short for Foreign Exchange, is the act of converting one currency into another. This is usually done for a variety of reasons and could range from personal such as tourism to...

What Is a Commodity Market? Similar to any other market around the world, the commodity market allows participants to buy or sell products that range from luxuries to everyday essentials. Many c...

What is a Stock Market Index? An index measures a specific stock market or part of it continuously which helps investors assess current prices and performance versus previous ones. Indices are made ...

Introduction Options contracts, or simply options, are agreements that give the holder the right, but not the obligation, to buy or sell a specific amount of an underlying security at a specified ...

Introduction to the stock market The thought of investing is never an easy-to-digest for most people with little experience in the financial markets. Many have been tricked by so-called experts ...

About Metatrader 5 Metatrader 5 is one of the most sought-after and widely used trading platforms in the world. It’s the successor to Metatrader 4 which is currently being phased out by most tradi...

About Metatrader 5 Metatrader 5 is one of the most sought-after and widely used trading platforms in the world. It’s the successor to Metatrader 4 which is currently being phased out by most tradi...

About Metatrader 5 Metatrader 5 is one of the most sought-after and widely used trading platforms in the world. It’s the successor to Metatrader 4 which is currently being phased out by most tradi...

I. What are ETFs and their benefits? A popular diversification method that was first introduced in 1993, Exchange-Traded Fund (ETF) is a basket of open-funded pooled securities traded on stock excha...

I. What are the similarities and differences between ETF vs Stock? A stock is one particular security that denotes the ownership of a fraction of a certain company, while an ETF is a basket of diffe...

NFT stands for Non-Fungible Token; essentially, it's a digital asset that can take any form and shape. "Non-fungible" signifies that it is unique and cannot be substituted with anything else.   ...

What are Derivatives? Derivatives are financial instruments that derive their value based on underlying assets such as commodities, currencies, interest rates, and stock prices. Derivatives are co...

CFD stands for contract for difference. CFDs are a form of derivative trading. they derive their value from the movement of an underlying asset. They allow traders to trade price movements without ...

What is a CFD? A CFD, also known as a contract for difference dictates that a buyer will pay the seller the difference between the current value of a specific asset and its value at the time of in...

What is an ETF? An ETF which stands for Exchange-traded fund, (Figure 1) is a mix between a regular stock and a mutual fund. To explain this further, imagine the flexibility of trading a regular...

The definition of Intermarket analysis Intermarket analysis focuses on analyzing multiple asset classes that are related. You may be wondering which asset classes are related and the general answer ...

It’s true when they say the financial markets never sleep and that is because the markets are open 24 hours a day, 5 days a week, and are constantly moving, sometimes in a tight range and other times...

What are Fibonacci Numbers? Leonardo Fibonacci was a mathematician born in 1170 AD. From his work, we get the Fibonacci sequence of numbers and the well-known Fibonacci golden ratio. The Fibonacci s...

Introduction Moving Averages is the oldest technical indicator used by the trader. It was drawn by hand before computers were used in technical analysis. It is beneficial for any trader and has a lo...

What is Bollinger Band? Bollinger Band is constructed by two bands surroundings a 20 simple moving average. They expand and contract based on the standard deviation of the moving average. Bollinge...

Introduction Technical Indicators are a mathematical formula calculated from price data to provide traders with some information that cannot be easily shown from the pure prices like momentum and vo...

What is VIX Index? VIX is CBOE indicator that measures the implied volatility that is being priced into S&P 500 index options. Through the use of a wide variety of option prices, the index offer...

What is Elliott wave theory? The theory was developed by R.N. Elliott in the 1930s and was popularized by Robert Prechter in the 1970s. Elliott studied several years of stock market data across va...

Introduction Volume is the fuel that drives the market. The volume reveals when the major operators are moving in and out of the market. Without volume, nothing moves, and if it does move and the vo...

Introduction Chart pattern analysis is probably one of the most popular forms of technical analysis. Chart patterns help to identify market tops and bottoms as well as trend continuations. Chart pat...

Intro Central banks are the driving force behind the economy of every country in this world. They play a very important role related to the growth and sustainability of societies and use a variety o...

Intro Stock market Prices move randomly in the short term daily; you cannot be sure if tomorrow will be an up or down day, so it is tough to predict this movement over short time periods, but in the...

Introduction The financial markets comprise more than 500,000 securities, derivatives, currencies, bonds, and other financial instruments. All interact with each other to some extent and a seemingly...

Before the existence of financial data tool providers, and before retail traders were able to trade online; for a transaction in the financial markets to occur, there used to be a process that was ...

Reading charts Studying charts is part of the broader method of technical analysis which is the study of historical prices and patterns that could help in predicting future outcomes. While technic...

What is a trend? Despite only showing up 30% of the time, compared to ranging conditions prevailing around 70% of trading sessions, trend trading is a popular and easy to get into strategy that ca...

What is price action trading?   Price action is the idea of trading a fairly “naked” chart with very little or no indicators and simply focusing on price and structure. Before we go deeper in...

What are support and resistance? Among the many different ideas that form technical analysis, one of the most important ones would have to be support and resistance. Nearly all trading strategie...

What are trend lines?   Trend lines are diagonal or horizontal lines drawn across specific swing points on a trend that represents support or resistance levels and help predict where the next t...

About simple candlestick patterns By now, you should know the definition of a candlestick and what it represents. Candlestick patterns are recurring formations of candlesticks that are made up of ...

About advanced candlestick patterns Previously, we looked at simple candlestick patterns, made up of one single candlestick and allowing traders to use them for further confirmation.   This time...

Market Moves in Cycle Prices move in different cycles, whether long term, medium-term or even short-term cycles. These cycles reflect the long-term, medium-term, and short-term trading signals, as...

Introduction Technical Indicators are mathematical formulas calculated from price data to provide traders with some information that cannot be easily shown from the pure prices like momentum and v...

What is the ATR indicator? It was developed by J. Welles Wilder and was first mentioned in his book, New Concepts in Technical Analysis Systems (in 1978).   The true average range (ATR) indica...

Real versus Nominal Interest Rates Let’s suppose I have some euros and if I deposit them at the bank for 1 year, they will give me a return of 3%. This is the nominal interest rate. What this mean...

Introduction If any trader is sure the next deal will be a winner, he will use all his capital to enter this transaction, but because trading is based on the probabilities, it is impossible to say...

Introduction The interest rate is one of the main tools of monetary policy for central banks. Interest rates refer to the cost of borrowing money that is measured by yield to maturity. There are t...

Introduction There’s no doubt that the dollar index plays a dominant role in the financial markets, in which it controls 88% of transactions in the foreign currency market and all commodities such...

What is a trading range in the market? Financial markets spend a considerable amount of time going back and forth within a relatively defined price area. This is known as a range. In fact, most tr...

What is Scalping? Scalping is a day trading strategy where an investor buys and sells an individual stock multiple times throughout the same day. It is a popular trading technique that’s been arou...

Introduction Suppose you want to become a successful trader in financial markets. In that case, you have to choose a way of trading that suits your way of life, trading methods can be classified i...

What is Fundamental Analysis? Fundamental analysis is a method of measuring a security’s real value. It includes examining the factors affecting the price of stock including both macroeconomic and...

An income statement also called a Profit and loss account (P&L) is a financial statement that shows the company’s revenues from sales, expenditures, and profits over a specific time. In simpl...

Introduction The Moving Average Convergence-Divergence (MACD) timing model become one of the most popular technical tools, used by short- and longer-term investors in the stock, bond, and other in...

Introduction Technical Indicators is a mathematical formula calculated from price data to provide traders with some information that cannot be easily shown from pure prices like momentum and volat...

J. Welles Wilder, the developer of the well-known and commonly used Relative strength index RSI leading indicator developed the parabolic stop and reverse indicator, commonly known as the "Parabo...

What is a currency pair? A currency pair is the quotation of two different currencies that constitutes a currency rate and acts as an object of operations in Forex. The view of the currency pair i...

Introduction Out of the thousands of trading products available throughout the world, one characteristic brings them all together: They are either trending up or down, or ranging within two rough ...

What is a cash flow statement? A cash flow statement is a financial statement that summarizes all cash inflows received by a company from continuing operations and external investment sources du...

What is a recession? There is not a specific definition for recessions; however, according to the National Bureau of Economic Research’s (NBER) Business Cycle Dating Committee, an economy is said ...

Introduction The charting system of Ichimoku Kinko Hyo was developed by a Japanese newspaperman named Goichi Hosoda. He began developing this system before World War II with the help of numerous s...

William’s percentage Range is a momentum oscillator developed by the trader Larry R. Williams in 1973. The concept behind this indicator is to demonstrate the price’s closing range in reaction to t...

Price gaps are simply areas on the chart where no trading has taken place. In an uptrend, for example, prices open above the highest price of the previous day, leaving a gap or open space on the ...

What is a balance sheet? A balance sheet, also called the Statement of Financial Position, acts as a snapshot of the company’s financial position at a certain point of time. It reports the assets ...

The MACD was invented by Gerald Appel. It is one of the well-known indicators that use moving averages. How to calculate the MACD: The MACD consists of two lines, the first line is named the ...

Moving Average A moving average is a lagging technical analysis indicator of which its main function is to smooth prices thus decreasing price noise and creating constantly updated average price. ...

Most traders, regardless of their experience level, risk tolerance, or style of trading use or have used technical analysis to make trades or at least analyze the market. The importance of it is un...

The importance of trading indicators. There is no doubt about the importance of trading indicators for those who seek to technically analyze the financial markets. This applies to FX, Commodities,...

Fundamental analysis is a broadly used method of analyzing an entire market, an asset class, a sector, and even a specific company. Fundamental Analysis focuses on the key economic and financial fi...

What is sentiment in trading? Sentiment refers to the mood of traders related to a specific market. As traders develop a certain sentiment towards the market, it affects their positioning and in t...

Different types of Forex traders The world of financial markets can be approached in many different ways. While the end goal is to make money, the way to get there is different based on the pers...

Intro Portfolio diversification is the process of investing your money in different asset classes and securities in order to minimize the overall risk of the portfolio. When you diversify your portf...

Introduction “Don’t put all your eggs in one basket” is a proverb that warns against investing all of your resources in a single source. If something were to happen to that basket, you’d lose all ...

What is leverage? Leverage is a tool that allows you to control a trading position with only a fraction of its total value. Effectively, it gives you bigger exposure and allows you to maximize your ...

What is risk management in Forex? Risk management is the practice of limiting or reducing risks associated with trading or investing in the financial markets. From a theoretical perspective, rewards...

The importance of developing a trading strategy Traders often hear the importance of having a plan when trading the financial markets and it’s one of the best pieces of advice anyone can be offered....